By Chamodi Gunawardana

Following a decision of the Economic Committee, private medical testing and diagnosis charges will be exempt from Value Added Tax (VAT), Special Assignments Minister Dr. Sarath Amunugama said yesterday. 

Dr. Amunugama said this decision was taken considering the appeals that came from the public, especially senior citizens. 

“The Committee made the decision to give this concession for people who use private medical resources for urgent circumstances and it was not to discourage the Government medical sector,” he said.  

Dr. Amunugama said the committee had also suggested exempting VAT from international air tickets in the interests of low income earners who fly to the Middle East. 

“There was a huge demand from domestic workers to reduce air ticket prices to an affordable price. However this relief will apply for all air tickets to any country,” he stated.

In addition Dr. Amunugama said new taxes will remain on liquor and cigarettes products in order to discourage consumption. He further noted a special cess tax will apply for imported palm oil to promote local coconut oil production. 

These proposals would be submitted to Cabinet approval next week,” the Minister added.

Govt. extends grace period for payment of water, electricity bills, leasing and bank instalments

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The Government has decided to provide further relief to the people who have been affected by recent floods, landslides and the explosion in the Salawa Army camp.

Earlier, the government has declared a grace period to enable the affected residents to pay their household water and electricity bills. 

On the recommendation of the Disaster Management Ministry, this grace period has now been extended for another two months starting from 16 June, Finance Minister Ravi Karunanayake said.

In addition, facilities have been made for the disaster affected people to delay the payment of vehicle leasing or bank loan instalments by two months, the minister said. 

The government had earlier granted one month grace period for the disaster affected people to pay their household water and electricity bills.

Meanwhile, Finance Minister Ravi Karunanayake further said that Rs.380 million were released 16 June to the Disaster Management Ministry to pay the Rs.10,000 flood relief allowance for the disaster affected residents of Kolonnawa.